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The major bank has made its predictions on the trends in commercial broking for the year.
NAB expects a “year of opportunity” for commercial brokers over the course of 2023 as business conditions and confidence improved in the early part of 2023 after a “weaker end to 2022”.
According to the major bank’s business survey for January 2023, trading conditions, business profitability, and employment had strengthened at the start of the year after the “softer” business conditions seen in the three months to December 2022.
NAB commercial broker and equipment finance, Chris Thomas, stated businesses in Australia have been “resilient to economic headwinds” with many looking to expand and take advantage of opportunities as they arise.
“Confidence has improved this year and businesses are keen to transact and invest but there is still uncertainty in some industries,” Mr Thomas said.
“Across the board business owners are making prudent choices and carefully reviewing their decisions.
“In this environment, commercial brokers are continuing to be trusted advisers to Australian businesses, supporting business owners to understand and navigate challenges in the market.”
According to the Australian Bureau of Statistics (ABS) Capital Expenditure Survey for the September quarter of 2022, businesses intended to invest more in 2022–23 financial year than they did during the FY21–22.
Mr Thomas continued: “Businesses have several levers they can pull to respond to any given market environment — including expanding into new markets or product lines, raising prices, or cutting costs.
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“Brokers will be critical to guiding business owners to identify the most appropriate funding solutions to get the best outcomes for their businesses.”
In addition, NAB predicts that the evolving residential property market will have “flow on effects for business owners”.
Although housing markets are active with annual sales volumes still 4.6 per cent above the decade average as of February 2023 (according to CoreLogic figures), price growth has cooled down.
“Changes in the housing market mean business owners are now more reluctant to put personal assets, such as their family home, as security for their business loans,” Mr Thomas added.
“Specialist advice from commercial brokers will be invaluable in this environment. There is a greater diversity of options available today that allow businesses to unlock the value of their balance sheets.
“Brokers also have opportunities to assist business owners with refinancing their home loans, as well as commercial finance solutions.”
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